Commercial Tax forms major chunk of Karnataka’s revenue

Presenting a record Rs 1,63,419 crore state budget here on Friday, Chief Minister Siddaramaiah, who also holds the finance portfolio, said without burdening the poor and middle class, and keeping the developmental needs of the state, the government had decided to increase taxes on only certain items including liquor, entertainment tax and tax on the private transport sector. 

The government had fixed revenue target from excise department at Rs 16,510 crore during this year, compared to the target of Rs 15,200 crore to be achieved during 2015-16. There would be a 25 per cent increase in taxes on liquor. Reading out the proposals, Siddaramaiah said the government proposed to increase the excise duty on Indian-Made foreign liquor from existing Rs 45 to Rs 50 a litre and excise duty on beer from existing Rs 5 to Rs 10 a unit. 

Additional excise duty on all 17 slabs on IML would be increased to 12 per cent, from the current eight per cent. Additional excise duty on beer would go up to 150 per cent from the current 135 per cent. It was also proposed to levy an administrative fee of Rs 2 a litre on export and Re 1 a litre on import of Spirit (excluding ethanol). 

These changes will come into effect from April 1 this year. “In order to protect consumers and to regulate the implications of liquor consumption, the concept of ‘responsible drinking’ will be widely publicised in partnership with liquor manufacturing associations,’’ he said. 

The revenue target from Stamps and Registration had been fixed at a higher Rs 9100 crore for next fiscal, compared to the revenue target of Rs 8200 crore for 2015-16. It was proposed to revise/rationalise certain articles in the schedule to the amended Karnataka Stamp Act of 1957 to mop an additional Rs 100 crore from stamp duty/registration fee. 

The government has set up a target of Rs 5160 crore from transport sector through MV taxes compared to the targeted Rs 4800 crore during the current fiscal. There will be increase in taxes on private stage carriage vehicles from Rs 600 to Rs 900 per seat, taxes on contract carriages from Rs 1000 to Rs 1500 per seat, tax on stage carriers from Rs 1000 to Rs 1500 per seat. 

Transport and non-transport electric vehicles had been exempted fully from payment of taxes, Siddaramaiah said.